Microsoft showed new Xbox 360 games (including Metal Gear Solid) and exciting new features for Xbox Live at a very impressive E3 Press Conference today. Here are the highlights (and a few images!). Note: No Hulu integration, but who knows, maybe next year..

Xbox Live integration with Twitter!This has to be the best part of the announcement. Twitter on all 3 screens is fantastic for everyone.

Integration with Facebook!Customized Facebook experience for the living room. Integrates Facebook Connect. Real-time. Great design.

Integration with last.fm!

Enhanced Netflix, Zune Marketplace playback with movies and TV shows in Full On 1080p

Integration with Sky!

Retail games for download on demand! This is the beginning of the end for the disc.

and...

Project Natal. You as the controller? That's right. No more need for a controller! Very impressive. Steven Spielberg gave a speech and made the point that 60% of households do not have a videogame console. A controller-less Xbox 360 with motion capture might change that indeed.

Oh, and by the way..

Game Demos:

Rock Band Beatles. The Rock Band franchise continues to expand and this time they're going back to the 60's. Actual Beatles on stage. Looks ok if you're a Beatles fan, but Guitar Hero Smash Hits (out on 06/16) and Guitar Hero 5 (9/1) might be better options if you're not.

Tony Hawk Ride (with skateboard controller). Tony Hawk showed off the board and described it as "social, physical" skating. Sources tell us the board is fun, realistic and intuitive. This might be the best skateboarding game ever.

Modern Warfare 2. Great effects. Explosions in a jungle, snowmobiles in the arctic.

Final Fantasy. This RPG has been around 1987. How are they still making this game? They need to rename it to Yet Another Fantasy.

Shadow Complex. Could not hear the guy as his mic was off and he yelled at the audience. This game seems like today's version of Contra.

Joyride. "Drive your avatar wild". The social aspect of it seems innovative. Looks like it will be popular with young crowds.

Splinter Cell Conviction. Sam Fisher is back; graphics look very good. Each environment is built like a small sandbox. New tools and gadgets.

Forza Motorsport 3. Game director Dan Greenawalt kept talking about "the competition" and called the game "biggest racing game of this generation". Good mix of graphics, design capabilities, video editor, and community features (ie. upload HD video).